India: OMC Cuts Base Price for Upcoming Iron Ore Lumps E-auction
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Odisha Mining Corporation has scheduled its next iron ore lump e-auction on 01 Feb'19, base prices decreased by INR 650/MT against the previous e-auction conducted on 03 Dec'18.
Odisha Mining Corporation (OMC) - a state-owned miner is to conduct next e-auction for 350,000 MT iron ore CLO and lump on 01 Feb'19. The material put under the hammer is from Gandhamardan, Daitari and Koira mines. No traders shall be allowed to take part in the e-auction.
Out of the total quantity, 335,000 MT is DR-CLO and remaining 15,000 MT is lump ore.
Price comparison of OMC iron ore e-auctions-
| Mines | Size (mm) | Fe (%) | Base Price as on 03 Oct'18 | Base Price as on 03 Dec'18 | Bid Price as on 03 Dec'18 | Base Price as on 01 Feb'19 | Quantity (MT) |
| Gandhamardan | 10-40 | 62% | 4,100 | 3,700 | 3,700 | 3,050 | 135,000 |
| 10-180 | 65% | 3,400 | 3,000 | 3,150-3,200 | 2,350 | 15,000 | |
| Kurmitar (Koira) | 10-40 | 62% | 4,600 | 4,200 | 4,200-4,250 | 3,550 | 150,000 |
| Daitari | 10-40 | 62% | 4,500 | 4,100 | 4,400-4,450 | 3,450 | 50,000 |
| Total | 350,000 | ||||||
Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
Iron ore production of state-owned miner- OMC increased by 10% to 1.03 MnT for the month of Dec'18 as against 0.94 MnT in Nov'18. For the duration Apr-Dec'18, the total production by the miner recorded at 5.78 MnT.
Current trade prices of Odisha based merchant miners for 5-18mm is around INR 3,800-4,000/MT (ex-mines, including Royalty, DMF & NMET). On monthly basis, it has come down by INR 600-700/MT.
